All Forum Posts by: Leon F.

@Greg M.

The rent is average/slightly below for the area. I could probably get $600-$700 if I fixed if up, but since he already was living there and I didnt need to do anything I figured that would be cheap rent while he figures out how to come up with the purchase price.

@Jay Hinrichs

No. No credit towards the rent. The $550 is the rent only and is seperate from the $15,000 price. I only took the $550 first month rent and didn't ask for extra because he said it was a struggle to come up with that.

Correct. We do have a "Lease w/ Option to Purchase" contract. We both signed it. He has a copy I have a copy. He is just now claiming a misunderstanding / misinterpretation of the deal.

So I bought a property in 2018 from the foreclosure auction in Louisville at the courthouse.

The house was still occupied by the original owner. When I went to talk to him he didnt believe I had bought it and thought there was a mistake and didnt know his house was being auctioned etc.

Long story short. We came to a Lease w/Option to Buy (Rent to Own) agreeement in July 2018.

His Rent would be $550 for 2 years and within that 2 years he has the Option to Purchase for $15,000.

He pays his $550 rent on time the entire time, but makes no extra/additional payments. When I've picked up the rent I've asked if he talked to any banks about loans, etc. And it's always no.

Here we are in July 2020. And he tells me he's ready to make his last Payment and he thought the $550 was ALL PAYMENTS towards the $15k and that he owns the house now etc.

What should I do now?

Anyone else experienced any lease/option misunderstandings?

@Medriand Arnold it sounds like you are saying your new tenants pay rent at the END of the month. so they are paying December rent on JAN 1st? paying January rent on FEBRUARY 1st? that sounds odd, but if that is the case then DECEMBER RENT belongs to the previous landlord because he/ she owned it in December.

I run a tree service. You are responsible for trimming limbs back from your property. The only time it is  the tree-owner's responsibility is if it is dead tree and limbs are breaking/falling creating a hazard.

Same if a tree falls. When it falls, which ever property it lands on is the new owner of that tree or limb. Regardless of where it originated from.

it sounds like he bought it for $265k paid it down to $225k ($40k equity?) but it's only worth $180k-$190k?

doesn't sound like there is much room to make any money. Did the insurance pay out for the fire?

You Pay Off The Two 25% loans.  You Get The 2 Homes Rented.

Now You Have income coming in &  You Still Have Access To The High interest $50k credit card to do it again if you have to use it. 

it's not that wild when you think about regular people with low paying jobs and kids. $15/hr 40 hours a week =$600 (if u get40hrs. After taxes 600 is more like $500. So you got $2000/ month. rent: $600-700 car payment $200-300 gas$$$100 (low) car insurance$100-200 cell phone$100 utilities: gas/electric/water$200 more than half of your monthly income is already eaten up before grocery and other incidentals. add in a child or 2 or 3 that you have to feed and clothe, send to daycare or buy pampers etc and suddenly it's not so hard to see why people are broke. that's why check advance tote places exist. allot of people are out here living check to check literally and any little hiccup can throw everything off track.